These are great but they are all in the Smokies a traditional vacation market so we are looking to diversify and move into some other markets.We have quite a bit saved up from the cash flow and recent cash out refis. 

These are park owned homes that generate really solid cash flow. 

If the property tax is expected to increase for the new owner, should the company making the purchase from the original owner reflect the higher tax amount on the ALTA in my transaction?

Out-of-state turnkey may sound attractive, but the cash flow is low and the perceived passivity is too high as you still need to manage the manager to be successful.Go to some local real estate meetups, talk to other investors near you and see where they are investing and at what price point.

Hopefully that will get them to take the cash for keys option. 

I believe they stopped using knob and tube wiring sometime in the 40s.Roof - Of course in that amount of years, most likely the roof has been replaced at least a couple times, but this is also a big ticket items to look closely at.Plumbing - I think it was sometime in the 80s when PVC pipes were starting to be widely used.  

Part of me wants to cash out and purchase in another state which has more appreciation potential as I believe my local market has peaked. 

Another alternative that gives you quicker access to cash would be to borrow against it now.  

And finally (I personally despise this option) you offer cash for keys.

I am not sure who you are using as your Realtor but I would reach out to a Anthony Wong who specializes in investment rentals or buyig the right primary that can be converted to a rental that will cash flow.